Stocks Take Aim at Record Highs with Netflix Earnings On Deck

U.S. stock futures are trading above fair value this morning, pointing to fresh record highs for the Dow Jones Industrial Average (DJIA), S&P 500 Index (SPX), and Nasdaq Composite (IXIC). Investors are gearing up for the first full week of corporate earnings -- and while today's earnings slate is rather light, many will be watching a post-close release from red-hot Netflix (NFLX). As for economic data, the Empire State manufacturing index for October jumped to a three-year high. The energy sector could also be in focus, as oil prices rally amid reports of growing conflicts in Iraq. At last check, November-dated crude futures were up 1.6% at $52.26 per barrel.

Continue reading for more on today's market, including:

• The Valeant stock pullback could be scaring chart watchers.
• Inside Bristol-Myers Squibb stock's impressive winning streak.
• An options strategy that mimics stock buying.
• Plus, the biotech up 18% pre-market; JD.com set to rally; and a big bear note on Adobe.

1. The Chicago Board Options Exchange (CBOE) saw 953,477 call contracts traded on Friday, compared to 619,436 put contracts. The single-session equity put/call ratio dipped to 0.65, and the 21-day moving average stayed at 0.64.
2. Cancer specialist Exelixis, Inc. (NASDAQ:EXEL) is up more than 18% in pre-market trading, thanks to news the company's liver cancer treatment, cabozantinib, met its goals in a late-stagy study. EXEL shares have already doubled in value over the past year, closing Friday at $24.76.
3. Chinese e-commerce giant JD.com Inc (ADR) (NASDAQ:JD) is set to add 3% at the open, following a bullish Barron's write-up that suggested the stock is a better bargain than Alibaba (BABA), and could rally 30% over the next year. JD stock was last seen trading at $38.72, putting them roughly 2 points above their 200-day moving average.
4. Shares of Adobe Systems Incorporated (NASDAQ:ADBE) are down more than 2% before the open, following a downgrade to "hold" from "buy" at Deutsche Bank. The brokerage firm kept its price target at $160, saying it expects the shares to trade sideways in the near term. ADBE stock finished Friday at $153.93, not too far below its record high of $157.89 from Sept. 11.
5. Charles Schwab (SCHW), IDEX Corp (IEX), Omnicom (OMC), and Sonic (SONC) will also report earnings.

Overseas Trading

Stocks in Asia settled mostly higher today, tracking a positive weekly finish on Wall Street. In Tokyo, the Nikkei tacked on 0.5% and found a fresh 21-year peak, led by M&A-related gains for SoftBank and a healthy bounce for scandal-stricken Kobe Steel. Likewise, steel stocks were among the top performers in Seoul, with South Korea's Kospi settling 0.3% higher. Hong Kong's Hang Seng nailed down the biggest daily gain of 0.8%, while China's Shanghai Composite closed down 0.4% following a stronger-than-forecast rise in wholesale inflation.

European markets are just barely higher at midday, with traders keeping a wary eye on the ongoing uncertainty regarding Catalonia's bid for independence. However, oil stocks are on the upswing, with Brent crude futures rallying nearly 2% to $58.29 per barrel after Iraqi forces seized control of Kirkuk's oil refinery. At last check, the German DAX is up 0.2%, France's CAC 40 is 0.1% higher, and London's FTSE 100 has edged up 0.02%.